Upload
sharon-lezberg
View
188
Download
3
Embed Size (px)
DESCRIPTION
Citation preview
“Economics of Biofuel Feedstock”
Dr. Cole GustafsonApril 10, 2012
Corn vs. Biofuel Feedstocks• Economics of Corn Production
– Market price– Low cost of production
• Feedstock Economics– Contract/Price– Sustainable– Lower GHG– Low Cost– Scaleable
North Dakota Projects
• Wheat straw to biofuel• Energy beets• Flair gas to fertilizer• USDA feedstock market standards• Economics of corn stalk harvesting
Energy Beet Plant Design
• 20 mgy• Feedstock, 20 miles, 30,000 acres• 70% thermal energy from feedstock• Capital investment $40 million w/ working
capital
Energy Beet Industry Development• Phase I
– 2009 APUC, $58,245, Initial Feasibility– 2009 REC, $330,000, Burn Test, Yield Trials,
Juice Storage, Grower Education,
• Phase II– 2011 APUC, $73,317, EPA Advanced Biofuel– 2011 REC, $1,000,000, Frontend Processing,
Yield Trials, Juice Storage, Promotion
• Phase III– Commercialization
Year Conventional Biofuel
Advanced Biofuel
Cellulosic Biofuel Biomass-based Diesel
2008 9.0
2009 10.5 0.60 0.5
2010 12.0 0.95 0.10 0.7
2011 12.6 1.35 0.25 0.8
2012 13.2 2.00 0.50 1.0
2013 13.8 2.75 1.00 *
2014 14.4 3.75 1.75 *
2015-2022 15.0 5.50-21.0 3.00-16.0 *
2007 Energy Independence and Security Act
Biomass Contracts
• What, When, Where?• Moisture• Premiums/Discounts
– Foreign matter (dirt)– Purity– Spoilage
Highly Variable Quality
Lower Than Expected Quantity
Logistics and Transportation
• Wheat straw biorefinery
• Is collection economically feasible?
Potential Wheat Straw Supply
• 1.16 million tons (bone dry)• 10% moisture• Plant height 34.6”• Combine height 7.6”• Producers are willing to supply• Adequate time to harvest
Farm Focus Group
Reason Percent Response Number of Participants
Too distant to haul 0.00% 0
No market 38.89% 7
Environmental concern 11.11% 2
Fertility loss 50.00% 9
Loss of wildlife habitat 0.00% 0
No time 0.00% 0
Total 100.00% 18
Table 2.7. Reasons Why Participants Do Not Collect More Straw
Farm Focus Group
Participant Number Wheat Straw ($/ton)1 - 2 35.00 3 40.00 4 30.00 5 25.00 6 20.00 7 25.00 8 50.00 9 40.00 10 50.00 11 20.00 12 30.00 13 15.00 14 15.00 15 15.00 16 50.00 Average 30.67
Table 2.12. Price of Wheat Straw Participants Willing to Accept
Potential Constraints
1) Rotary Combines2) Tenant vs. Land Owner3) USDA/NRCS
Stover Harvest to Maintain Carbon
Continuous Corn Corn Soybean Rotation
Grain Yield
Stover Plow Chisel/No Till
Plow Chisel/No Till
Bu/ac t/ac t/ac t/ac t/ac t/ac
103 2.2 0.0 0.0 0.0 0.0
156 3.3 0.0 1.0 0.0 0.0
200 4.5 1.1 2.1 0.0 0.9
259 5.6 2.2 3.2 0.0 2.1
312 6.7 3.3 4.3 0.9 3.2
363 7.8 4.4 5.4 2.1 4.3
415 8.9 5.5 6.6 3.2 5.4 Sou
rce:
PR
X 2
010,
Joh
nson
200
6
Competition
• Who else is interested in biomass?– Livestock bedding– Livestock feed– Fertility– Ground Cover– ????